Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
Al Mal Capital REIT, the first real estate investment trust (REIT) listed on the Dubai Financial Market (DFM), has launched a follow-on public offering (FPO) to raise up to Dh242 million in new capital.
The fundraise will support the acquisition of additional income-generating assets across healthcare, education, and mission-critical industrial sectors. The FPO follows the remarkable success of the Dubai Residential REIT’s recent IPO, which raised Dh1.245 billion after being oversubscribed 26 times.
The offering opens on July 7 and closes on July 25, with trading of the new units expected to begin on August 8, subject to regulatory approvals. The new units are priced at Dh1.10 each, including a nominal value of Dh1.00, a Dh0.10 issuance premium, and a Dh0.025 subscription fee including VAT. The cost for investor works out to Dh1.125 per unit.
The FPO will issue up to 220 million new units, raising the fund’s issued capital from Dh513.9 million to Dh733.9 million. Existing unitholders on record as of 26 June 2025 will receive a priority allocation equal to approximately 39% of their current holdings to ensure their shareholding is not diluted. A secondary allocation will provide a minimum guaranteed allotment of up to 2,000 units to eligible new investors.
Commenting on the offering, Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital, said: “There is a growing investor appetite for regional REITs as shown by recent offerings on the DFM that saw record-breaking retail participation, especially in the UAE. We are therefore pleased that we can offer more investors a chance to access Al Mal Capital REIT, which continues to deliver strong and consistent dividends.”
Al Mal Capital REIT has reported a stable performance since 2023, distributing an annual return of around 7%. To underscore this track record, the REIT announced an interim dividend of Dh0.0375 per unit for the first half of 2025, reflecting a 7.5% annualised yield. Only investors holding units as of June 26 will be eligible to receive this dividend.
As of May 31, 2025, the fund’s net asset value (NAV) stood at Dh577 million, with a NAV per unit of Dh1.1229. The REIT maintains a 100% occupancy rate across its real estate portfolio.
Al Mal Capital REIT is managed by Al Mal Capital, a subsidiary of Dubai Investments. Investment Corporation of Dubai (ICD), an arm of Government of Dubai, is the majority shareholder in Dubai Investments.
The FPO is open to retail and institutional investors from the UAE and across the GCC. Interested investors can subscribe through First Abu Dhabi Bank branches, online banking (for FAB clients), or by submitting a manager’s cheque payable to “Al Mal Capital REIT – FPO”. The minimum subscription is 2,000 units, equivalent to a total investment of Dh2,250 including fees.
Investors in the new units will be entitled to the same rights as existing unitholders, including eligibility for future dividend distributions.
“Al Mal Capital REIT’s follow on offering looks like a smart move for both existing and new investors who are after stable, long-term income,” said Samer Mardini, Chief Investment Officer at a family office in Dubai.
The REIT is expanding its portfolio, but doing so in a way that still protects current unitholders. “The pricing is fair, the structure is clear, and overall it reflects a mature, well-managed fund,” added Mardini.
“If they follow through on their plans to acquire solid, income-generating assets, there’s real potential for both the value of the fund and its dividend payouts to grow over time.”
